08-Dec-2017 - Biotage AB

Biotage acquires Horizon Technology

Strengthens position in environmental and food safety

Biotage AB has entered into an agreement to acquire all outstanding shares in the privately held company Horizon Technology, Inc. (Horizon) based in New Hampshire, US, at a purchase price of approx. USD 18.4 million, corresponding to approx. SEK 153 million, based on an enterprise value of approx. USD 16.4 million and cash of approx. USD 2 million. The purchase price will be adjusted for actual net cash at the closing date. Horizon is a successful provider of systems and consumables for separation in, among other areas, water purification, food safety, petrochemical industry, biofuels, agriculture and pharmaceutical industry, foremost at its US domestic market.

Through the acquisition, Biotage will strengthen its position as a niched separations company within environmental applications and food safety, areas were Biotage currently is less well positioned. Together with Horizon, Biotage will be able to offer its global customers a more comprehensive portfolio of products. In addition, Biotage’s global direct sales reach is expected to accelerate Horizon’s business. The combined operations will be well positioned to capture global growth trends, such as growing demand for testing and purification of water and food.

In 2016, Horizon generated net revenue of USD 8.2 million, corresponding to approx. SEK 68 million, and EBITDA of USD 0.7 million, corresponding to approx. SEK 5.8 million. Horizon had 41 full-time employees in November 2017.

Torben Jörgensen, CEO of Biotage, comments: "The acquisition of Horizon is in line with our strategy to grow our separation business through expansion into new application areas. This Transaction enables Horizon’s existing products to reach a larger global market through Biotage’s direct sales channels, at the same time as Biotage’s existing products get access to customers in industries where Biotage historically has not been as active.

The acquisition is complementary to our existing offering and allows us to meet the global trend of increasing awareness and concern of environmental issues, pollution and toxics. We are very much looking forward to becoming a larger player in these important and growing markets"

Robert S. Johnson, co-Founder and CEO of Horizon, and Martha D. Johnson, co-Founder and Executive Vice President, comment: "Horizon Technology has pioneered advancements in automated sample preparation for over 25 years. We are excited to partner with Biotage for the next phase of Horizon’s development. This combination will allow Horizon’s product offering to continue to expand its global footprint and open up new opportunities for developing and bringing our innovative products to the market."

The transaction will be financed mainly with a bank loan, combined with Biotage’s existing cash at hand. Closing is expected in the first quarter of 2018. Biotage estimates that synergies in sales and operating expenses will lead to an operating profitability margin in the acquired business at a level at least in line with those generated today by Biotage’s current business.

Facts, background information, dossiers
More about Biotage
  • News

    Strategic Collaboration between Biotage and Yingsheng on the Chinese Market for Clinical Mass Spectrometry Applications

    Biotage AB announced its strategic collaboration with Shandong Yingsheng Biotechnology Co., Ltd.. Yingsheng is mainly focused on independently researching, producing and selling in vitro diagnostic reagents and medical equipment, building a genetic detection platform and mass spectrometry d ... more

    Tomas Blomquist: New CEO & President of Biotage

    Biotage has appointed Tomas Blomquist as the new CEO and President of Biotage AB. Tomas Blomquist, most recently Vice President EMEA Cardimetabolic at Abbott, will start his assignment on November 6, 2019, and will then take over the responsibility for the Biotage group and its + 400 employ ... more

    Biotage Awarded Patent for Flash Purification Method Development and Optimization

    Biotage announced it has recently been awarded U.S. patent 7686959: Control system and Method for Flash Separation. The patented technology converts thin-layer chromatography (TLC) compound retention data into a linear gradient and also provides the user with sample loading estimates for an ... more

  • Companies

    Biotage GB Ltd

    Biotage is a global company specializing in life science research technologies in the areas of medicinal and analytical chemistry and process development. Technologies include microwave synthesizers, automated flash chromatography instruments and cartridges, sorbents, scavengers and reagent ... more

    Biotage, LLC

    Biotage offers solutions, knowledge and experience in the areas of analytical chemistry, medicinal chemistry, peptide synthesis, separation and purification. The customers include pharmaceutical and biotech companies, companies within the food industry and leading academic institutes. The c ... more

    Biotage AB

    Biotage is a Global Impact Tech Company committed to solving society's problems. We offer workflow solutions and products to customers in drug discovery and development and diagnostics, analytical testing and water and environmental testing. Biotage is contributing to sustainable science w ... more

More about Horizon Technology
  • Companies

    Horizon Technology, Inc.

    Horizon Technology is a leading manufacturer of automated sample preparation systems for the analysis of organic compounds in aqueous samples and Oil & Grease testing. Environmental labs who follow EPA methods for semi-volatile organics, Oil & Grease, DRO's, TPH, Pesticides, and Explosives ... more